U.S. Department of the Treasury Highlights the Benefits of Public-Private Partnerships for Main Street and Underserved Rural and Urban Communities

WASHINGTON – The Economic Opportunity Coalition (EOC), launched by Vice President Kamala Harris in July 2022, is a group of more than two dozen companies that have committed to making investments in small business underserved communities to address economic disparities and jumpstart local economic activity. To date, the EOC has announced $1 billion of deposits with Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) through partnerships with private companies. 

Alongside the efforts of the Economic Opportunity Coalition to support underserved communities, the Treasury Department released new data on lending activity by participants of the Emergency Capital Investment Program (ECIP). ECIP was established to support the efforts of community financial institutions to provide financial products and services for low- and moderate-income and underserved communities that disproportionately suffered from the impacts of the pandemic, by providing capital investments in CDFIs and MDIs with track records of serving these markets. 

In about 18 months, ECIP participants originated a total of $58.3 billion in loans, of which more than one third was to individuals and communities that have traditionally lacked access to capital, deemed “Deep Impact Lending.” In addition to Deep Impact Lending in underserved places such as persistent poverty counties, ECIP participants also provided $4.5 billion in capital for small businesses, $1.2 billion in financing for affordable housing, and $2.6 billion in mortgages to minorities and other targeted populations. A list of resources for individuals or small businesses seeking assistance is available on the ECIP website. 

Success Stories of how Public-Private Partnerships are Supporting Communities: 

• First Independence Bank (MDI), Detroit, MI
  • Total ECIP Investment: $45,260,000
  • Kenneth Kelly, Chairman & President: “ECIP funding has been instrumental for First Independence Bank, enabling us to enhance our services and partnerships, growing our assets to nearly $600 million. This support enriches our customers’ financial well-being and strengthens our community.” 
  • Success Story: Through Q2 2024, First Independence Bank provided $316,000 in small business loans and $236,000 in loans to underserved businesses, including East Coast Food Management, which provides high-quality food services to schools and community organizations; Wow Me Web Design, a firm that offers digital marketing solutions to help local businesses thrive online; and Quest Diagnostic Nichols Institute, Inc., a critical provider of diagnostic services that support healthcare in underserved areas. These loans have empowered these businesses to grow and continue serving their communities effectively.
• Asian Bank (CDFI and MDI), Philadelphia, PA
  • Total ECIP Investment: $66,069,000
  • James Wang, President & CEO: “Asian Bank is profoundly grateful for the transformative impact of ECIP and EOC funding, enabling us to expand our reach and positively impact more people in our communities.”
  • Success Story: Asian Bank provided a $75,000 Small Business Booster Loan to a borrower in Kensington, PA. The loan helped preserve a vital food retail store called Manba Mini Market in a majority-minority area with a 33% poverty rate.
• Locus Bank (CDFI), Richmond, VA  
  • Total ECIP Investment: $36,400,000
  • Clyde Cornett, Interim CEO & CFO: “ECIP funding has significantly bolstered Locus Bank’s capital base, enabling us to expand lending in affordable housing and clean energy. With this support, we’ve increased lending by 131% and financed critical community projects.”
  • Success Story: Locus Bank provided a $7.5 million predevelopment line of credit for the Somos at McLean project in Tysons, VA. This project will provide 231 new affordable rental units near essential amenities and transportation.
• M&F Bank (MDI), Durham, NC
  • Total ECIP Investment: $80,000,000
  • James H. Sills III, CEO: “M&F Bank is deeply grateful for EOC’s support, which empowers individuals, businesses, and communities, fostering economic resilience and opportunity.”
  • Success Story: M&F Bank provided $6.5 million in debt financing to an NC-based HBCU, Shaw University. This financing facilitated debt restructuring and improved the university’s financial condition.
• Self-Help Credit Union (CDFI and MDI), Durham, NC
  • Total ECIP Investment: $243,000,000
  • Martin Eakes, CEO: “Treasury’s ECIP investments are transformative, enabling us to double our annual lending and serve more families and businesses.”
  • Success Story: Self-Help Credit Union provided a $796,500 loan to A Safe Place Child Enrichment Center in Southeast Raleigh. This loan enabled the center to acquire and upgrade an existing five-star childcare facility, greatly expanding its capacity. The enhanced facility now integrates traditional education with innovative outdoor experiences, significantly improving educational quality and promoting healthy lifestyles for both children and their families.
• Native American Bank (CDFI and MDI), Denver, CO 
  • Total ECIP Investment: $37,414,000  
  • Tom Ogaard, President & CEO: “The ECIP funding has provided Native American Bank with the capital to provide much larger loans to projects serving Tribal communities.  NAB has deployed much of its ECIP award to provide low-cost construction and permanent financing for on-reservation Tribal Health Facilities.”
  • Success Story: Native American Bank, N.A., a tribally owned, Native CDFI and MDI bank headquartered in Denver, Colorado, closed two loans totaling $10.9 million to finance the expansion of a critical healthcare facility located in Burney, CA. The healthcare facility is located on the reservation and will serve Pit River Tribal members as well as the surrounding rural community. The Indian Health Service funded non-profit facility will expand its family medicine, dental, and behavioral health outpatient services, as well as add optometry and a pharmacy, which will increase service capacity and reduce the need for patients to travel to other areas for providers. The loans were provided in concert with equity from the CDFI Fund’s New Market Tax Credit program as well as grant and loan funding from the USDA’s Community Facilities program. 
• Optus Bank (CDFI and MDI), Columbia, SC
  • Total ECIP Investment: $70,923,000
  • Dominik Mjartan, CEO: “ECIP and EOC investments have enabled Optus Bank to deploy nearly $400 million in loans to underserved communities, significantly increasing our assets and loan originations.”
  • Success Story: Optus Bank supported Dream Team Consulting, a company founded in 2018, in developing a solar farm. By funding the acquisition of 65 acres, the bank facilitated the transition to renewable energy, created local jobs, and fostered economic growth. This partnership highlights Optus Bank’s commitment to impactful and innovative investments that benefit both the environment and underserved communities.
• Southern Bancorp (CDFI), Arkadelphia, AR
  • Total ECIP Investment: $250,000,000
  • Darrin Williams, CEO: “ECIP’s impact is both transformational and generational, allowing us to scale our work, reach underserved communities, and lay a stronger financial foundation for future generations.”
  • Success Story: In March 2024, Southern Bancorp helped an African-American first-time homebuyer in Memphis secure a mortgage. Over several months, the bank assisted in rebuilding his credit from 620 to 700 and helped him save for a down payment and closing costs. This support enabled him to achieve homeownership, providing stability for him and his elderly mother and advancing his financial independence.
• Liberty Bank (CDFI and MDI), New Orleans, LA 
  • Total ECIP Investment: $133,000,000 
  • Alden McDonald, Jr , CEO: “Because of the ECIP investment, we were able to launch new initiatives that allow more people and small businesses to access funding during the economic stress of inflation and high interest rates. Daily, we see loans that would have otherwise been turned down by other institutions. Yet, ECIP allows us to fund those loans and get repaid. With our history and experienced team, we understand how to lend in untraditional ways that are safe and profitable for the bank.  Our primary goal is to provide fair, competitive structure and pricing to small businesses so they can grow and thrive well into the future.”  
  • Success Story: Recently, Liberty Bank funded a business loan for the purchase of a commercial vehicle. This company currently has 10 employees and is growing. After a few months of earning more revenue due to the initial loan, the business returned to Liberty seeking to purchase commercial space for its expansion. 

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